Sister Concern


What is th definition of sister concern? The term is defined under which act? In case of NPA provisioning, as per RBI norms, when any account is declared NPA; whether 'all facilities are to be regarded as NPA and provision on the same to be made' implies all sister concerns also? If yes, if personal account of individual is NPA, whether partnership account wherein he is only 1% partner is also to be considered NPA?



Sister Concerns means organisations under the same management. Where the important decisions(control and management) are taken by a person or group of persons managing one or more organisations. 


Definition of a "relative"

A person shall be deemed to be relative of another, if and only if, :-

a) they are members of a Hindu Undivided Family; or

b) they are husband and wife; or

c) the one is related to the other in the manner indicated below :


List of relatives

1. Father.

2. Mother including step-mother

3. Son including step-son

4. Son's wife

5. Daughter including step-daughter,

6. Daughter's husband.

7. Brother (including step-brother)

8. Brother’s wife

9. Sister (including step-sister)

10. Sister’s husband unj/Sen/DIR-Ban on Loan to Directors





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